A uranium mining site.Anthony B. Bannister
Denison Mines Corp. has signed a deal to buy Fission Energy Corp. in a stock-swap deal valued at about $70-million that will see the company spin out some of Fission's assets to a new company.
Under the deal, Denison has offered 0.355 shares for each Fission share.
The agreement will also see a handful of Fission assets, including its 50 per cent interest in the Patterson Lake South property in Saskatchewan's western Athabasca Basin, spun out to a new company to be held pro rata by current Fission shareholders.
The Fission assets acquired by Denison will include a 60-per-cent stake in the Waterbury Lake uranium project as well as exploration interests in properties in the eastern part of the Athabasca Basin, two joint ventures in Namibia plus assets in Quebec and Nunavut.
"This transaction further satisfies our corporate objective to become the leading explorer in the Athabasca Basin through continued growth and consolidation of strategically located assets," Denison president and chief executive officer Ron Hochstein said in a statement.
"The acquisition of Waterbury will allow Denison to expand its exploration efforts in the area of our Midwest uranium deposits with a significantly enhanced land package."
Fission shareholders will hold approximately 11 per cent in Denison when the deal is completed.
The deal, which includes a $3.5-million break fee, requires approval by Fission shareholders and gives Denison the right to match rival offers.
Denison has exploration and development projects in Mongolia, Zambia and Saskatchewan, including a 22.5-per-cent stake in the McClean Lake joint venture, which includes several uranium deposits and the McClean Lake uranium mill.
Fission shares traded for 64 cents on the TSX Venture Exchange before trading was halted pending the announcement.
Denison shares were unchanged at $1.46 on the Toronto Stock Exchange.